Some Bank of Canada officials are increasingly worried about downside risks to inflation as they decide how to set interest rates, while others see them as more balanced.
Stéfane Marion, chief economist of National Bank of Canada , joins BNN Bloomberg and talks about assessing the BOC's rate path moving forward.
Some members see the potential for shocks in either direction and expect shelter and service price inflation to offset the downward pressure of slowing economic growth. Others are increasingly focused on the risks associated with a further weakening of the economy and the jobs market. Governor Tiff Macklem had already told reporters on Sept. 4 that the governing council had discussed those scenarios. Still, the deliberations highlight the uncertainty around the path for lowering borrowing costs in Canada.
On Tuesday, Statistics Canada reported that the consumer price index rose by 2% in August on a yearly basis — the slowest rate of increase since early 2021.
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